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(U3) Bought-on-Dips Theme Hits Pause

JGB TECHS
  • RES 3: 151.26 - High Mar 3 2022
  • RES 2: 149.75/150.81 - High Nov 11 / High Aug 5 2022
  • RES 1: 149.21/53 High May 12 / High Mar 22
  • PRICE: 146.82 @ 15:27 BST Jul 31
  • SUP 1: 146.65 - Low Jul 31
  • SUP 2: 146.11 - Low Feb 22
  • SUP 3: 144.15 - Low Jan 13

JGBs corrected lower on the back of the BoJ rate decision, slipping to new pullback lows of 146.79. Prices slipped again Monday, narrowing the gap with key support at the 146.11 low on the continuation contract - last printed back in February. The previous buy-on-dips theme appears to have paused, but any return higher will initially target the May 12 high of 149.21. Clearance of these levels would highlight an important break.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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